Insurer Pays Nearly $6 Million In Penalties

Insurance Commissioner
Dave Jones announced today that National Union Fire Insurance Co. (NUFIC) of Pittsburgh, a member of AIG's Chartis Group, has agreed to pay the California Department of Insurance (CDI) a penalty of nearly $6 Million for violating fair business practices.

"This is a win for California consumers and sends an important message to insurers about the cost of not complying with laws and regulations designed to protect consumers," said Insurance Commissioner
Dave Jones.

The products covered under the settlement include group and blanket limited benefit plans, supplemental accident and disability policies, and accident and disability coverage provided with travel insurance policies.

A number of improper practices and violations were cited by insurance regulators, including delays and errors in processing claims, product limitations not explained clearly, failure to use properly licensed people to sell insurance products, and failure to fulfill and administer policies after sale, among others. As a result of these violations, CDI participated in a multi-state insurance regulators investigation and enforcement action against NUFIC.